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Evaluate the approach to marketing within the UK women’s clothing industry and the firm’s effectiveness in its competitive situation within the market.

Read the scenario below before undertaking the THREE (3) tasks which follow:

You have recently been promoted to the head of a major women’s clothing outlet called Sasha’s. You have been given the project task requiring you to prepare a report for your business covering the following areas:

  1. Based on secondary market research data, provide a briefoverview of the UK women’s clothing market, identifying specific areas of product/market growth that might provide Sasha’s with a viable marketing opportunity.

Sasha’s is a non-existent company in this assessment. You will need to identify the main factors impacting on the company (e.g. competitors) and provide a detailed analysis. You may find that some factors exert a stronger influence over the company than other factors. You will need to make an evaluation of this through your assessment of the information.

  1. Identify those consumer segments who are driving this growth, and using relevant socio-demographic, psychographic, and behavioural variables, develop detailed segment profiles.

Here you will need to identify and examine the key consumer segments. The key will be to identify relevant and valid data which will provide you with a detailed assessment of the market (e.g. target market). You will need to provide detailed analysis of how these elements contribute towards growth.

  1. Based on a proposed trial launch in London scheduled for June 2017 develop a detailed marketing mix to target the identified segment covering:
  • Product description
  • Brand image
  • Pricing objectives strategy
  • Retailing and distribution objectives and strategies
  • Integrated marketing communications’ objectives strategies

Here you will need to apply the marketing data collected to provide a compelling approach to Sasha’s marketing. The key will be to support your arguments with detailed analysis.  

Overview of the UK women’s clothing market

A thorough research of the market is necessary for any company when it is opening a new business in any market (Hollensen 2015). A proper knowledge about the demands and needs of the customer and the trends of the market will be necessary in such a situation (Babin and Zikmund 2015). If the country where the new business will start is facing any issues, then the business owner will have to think of other alternatives to launch the business. The economic condition of the country will also decide the buying behavior of the customers. In addition to this, not only the economic conditions, but also other factors like the political, environmental issues can also affect the business of the organization (Sheth and Sisodia 2015). In addition to this, the organization should also look into the types of customers present in the market. The products should be designed such a manner so that they are able to target the relevant customers, and get proper business from the customers (Strauss 2016). Depending on the types of customers present in the market and the conditions of the market, the business owner will have to design their products and plan the promotions. The promotions and the products should be planned so that the customers are able to connect to the new product and will be attracted the new company over the competitors (Lusch and Vargo 2014). Hence, it can be said that a thorough study the competitors is also important for the market.

Sasha is a new clothing company that is starting the business in the market of the United Kingdom. As London is said to the fashion hub of United Kingdom, hence Sasha has chosen London to start the business. If they are planning the new company in a place that is famous for fashion, then the country will face a huge number of competitors. The way the competitors function and work, will also affect the business of Sasha. They should get an idea about the strength and weakness of the competitors so that they can fare well than the competitors. They have to make a thorough research of the competitors to know the aspects of business to attract the customers to the retail stores. Sasha will mainly sell women’s apparel and fashion accessories. The report will evaluate the actions that have been taken up by Sasha to promote the business among the customers. The report will evaluate the external market and assess the threats and opportunities that Sasha will face from the external market. They will then be able to understand the types of customers who will be buying the products. Customer segmentation will be done based on the demographics, psychographics and behavioral segmentation of the customers. Based in the market conditions, threats and opportunities of the market, the segmentation will be done for the customers. Based on the research, they will decide the marketing mix for the products that will help the Sasha. The recommendations will be given if there are any gaps and Sasha can improve to make their business successful.

Porter five forces

The fashion industry of the United Kingdom is one of the strongest industries of the country. A huge amount of growth is on the cards for the fashion industry. The contribution of the women’s fashion is commendable as far as the growth of the fashion industry is concerned.

The market sales for women’s wear in the year, 2015 in the United Kingdom was 27 billion. It is expected that the markets sales for the women’s wear will increase by 23% by the year, 2020, which is an increase of 32 billion (Fabacus Overture 2016). Fifty one percent of British women have purchased handbags in the year 2015.

The online sales of the fashion industry are also rising at a steep rate. There has been shift of 2% as far as the online purchase of clothes have also increased. In the year, 2014, around 65% of the women has made purchases. The percentage rose to 67% in the year, 2015 (Strijbos 2016). The rate of buying clothes online has raised among the women. About 80% of the women who are between the age group of 16-24 years make purchases online rather than making physical purchases. A growth of 8% for online purchase has been seen among the women who are of 55 years of age. Fifty nine percent of the women make purchases online.

  • Threat of rivalry

Sasha will have huge number of competitors in the market of the United Kingdom and hence the threat of rivalry will be high. Next plc is one of the largest fashion brands of the United Kingdom. The market value of Next plc is 8.15 million pounds. It is one of the most active retail market and the annual sales of the company is 4.0 billion pounds. Next plc has a strong place in the national market and only 2% of the revenue comes from the international countries.

  • Supplier power

The power of supplier is relatively less a far as the women fashion is concerned (Czinkota and Ronkainen 2013). Suppliers are not only within the United Kingdom but other suppliers are present in different parts of the world (Hartley and Claycomb 2013). Hence, even if Sasha faces any issues with the suppliers that are present in the United Kingdom hey can source the raw materials from other countries as well.

  • Threat of new entrants

As Sasha is itself a new entrant in the market, hence it can be said that there can be threats from the new entrants in the market (McKenzie-Mohr 2013). However, already a number of fashion brands that are working successfully in the market of London and hence the new companies will have to think of something different to the customer to make their presence felt in the market. In other words, the more risks that a company will take, the high rewards they will get from the competition (Armstrong et al. 2014). However, Sasha itself would be an example and will be able to understand the business well.

  • Threat of substitution

As far as the fashions world is concerned, the women fashion cannot be substituted with the any other products (Papadopoulos and Heslop 2014). Clothes can be only substituted by clothes. As far as the core products are concerned, they will face little chances of competition, as there will only be clothes that will substitute the clothes (Boone and Kurtz 2013). However, a number of competitors are there in the market. The customers will always have an option to switch the company as per their need (Stelzner 2014).

  • Buyer power

With a number of fashion brands available, the buyers will be spoilt with the choices (Pike 2015). They can switch their choice any time of they are not liking the company. It can be a threat for Sasha as well as opportunity. The customers are accustomed with a number of brands coming to the market and hence there are chances that the customers will try the products that will be provided by Sasha. On the other hand, it will be threat for the company as the will be high chance that the customers will switch their companies if they are not satisfied with the products of Sasha (Baker 2014).

The porter’s five forces that will applied to Sasha can be presented in the following manner:

Figure 1: Expected porter’s five forces on Sasha

(Source: Created by author)

Political

A number of political factors might attract the business of Sasha. The government of the United Kingdom as imposed a number of taxes on the business. It will not only affect the business of the organization but also the buying power of the customers (Gov.uk 2017). Sasha will face issues with the corporate tax and the customers will not be able buy the products because of the rise in the income tax (Kotler et al. 2015).

Economic

Economically, both the Europe and London will be affected due to Brexit (Marian 2016). London is said to be the hub of fashion. The fashion industry will contribute for the development the overall economy. However, the market of the fashion industry will also suffer as the Britain will not get the benefits from the European Union. With the help of the trade union that they could have gained more business but it would be affected due to the Brexit.

Social

The ageing population of the United Kingdom will affect the business of Sasha. As the younger generation is more inclined towards fashion, the competition will be tough (Kirk 2015). Moreover, a number of competitors are present in the market (Ryan 2016). The business will be tough as there will be number of competitors fighting for a small amount of population (Christopher, Payne and Ballantyne 2013). The aging population can also be used as a way to gain business. Online shopping sites come with the free home delivery service (Scott 2015). The services will help the retail industry to gain business from the ageing population. They will be more inclined towards the online shopping and will be attracted to the home delivery services (Grönroos and Gummerus 2014).

Technological

Due to the advancement of technology, the retail industry will get the desired business (Kolodziej 2014). As united kingdom is a developed country, not only the adults but also the teenagers have smartphones (Bolton 2015). In addition to this, the development of the app will make things easier for Sasha. People can order for the products online through the app and from any place (Belch et al. 2014).

Environmental

Some of the natural disasters have affected the supply of the raw materials and delivery of the items. Frequent flood and snowstorms has negatively affected the supply chain of the fashion industry (Huang and Sarigöllü 2014). Sasha will have to suffer the environmental pressures in the market.

Due to sudden rise in the environmental awareness, the customers are also aware of the negative effects of the business (Smith 2015). Thus, the retail industry should make use of environment friendly things and reduce waste while working in the supply chains management.

Legal

The minimum wage legislation affects the business of the retail industry (Gov.uk 2017). The minimum wage that should be paid to a worker in the united kingdom shifts frequently. Sasha might have to face issues as the minimum wage they are paying to the workers might not be same always (Yadav and Pavlou 2014). An organization should keep a check in the changing regulations of wage to function smoothly in the competitive market (Kiel 2014).

Sasha is based on women’s apparel and they will focus on the female customers they will mainly focus on the customers who are working or the parents of the teenagers. As per the data, it has been seen that there has been an increase in the number of purchase among the women who are between  the age of 16 to 24 years. Sasha will  target the women between this age group for online as well offline shopping (Achrol and Kotler 2014). The mother of teenagers will also be targeted due to the inclination of the teenagers towards fashion (Tuten and Solomon 2014). Sasha will also target the families who are living in urban areas. People who are living in the urban areas will be more inclined towards fashionable clothes (Kumar 2015). Sasha will target both the nuclear families and the families who are living with the relatives.

Online sites and shopping is for all the regions and there will be no division geographically (Kozlenkova Samaha and Palmatier 2014). However, as far as the promotion and the physical store is concerned it will be mainly in the urban areas. In the urban areas, the people will have a good knowledge about fashions and the trends in fashion (Malhotra, Birks and Wills 2013). The urban people will be going out to work, they will need different types of clothes, and hence, Sasha will focus on the urban areas while segmenting the customers geographically to enhance their business (Lovelock and Patterson 2015).

The customers will look for benefits in the products that they are purchasing (Piercy 2014). Thus, Sasha will target the customers who are willing to spend more as well as who have a limited budget. It will help them to get attract a wide range of customers. As Sasha will open the business both online as well as the in the physical stores, they will do a survey to know the preference of the customers (Brennan 2014). They will also do a thorough survey to see the preference of the women who are inclined to online shopping. The purchase behavior of the customers hugely affects the business of an organization (Risselada, Verhoef and Bijmolt 2014). Thus, mainly those customers will be targeted who more into online as well as offline shopping. The prices of the clothes would be kept low so that they are able to seek benefits from the products that they are buying (Hollensen 2015). Once a new company comes into the market, the customers try to measure the benefits that they will get if they change their preference (Babin and Zikmund 2015). When they will see that they are getting more benefits with the new brand than they were getting from the old one, they will start preferring the new brand to other brands (Sheth and Sisodia 2015). The brand loyalty of the customers will be another factor based in which the customers will be targeted (Strauss 2016). The customers who have their preference for one brand might not be able to shift their preference for new brand (Lusch and Vargo 2014). On the contrary, Sasha will target the customers who have bought clothes from multiple brands more. The customers who do not stick one brand might like to look for other brands (Czinkota and Ronkainen 2013). Sasha being new in the market might catch the attention of the customers who not sticking to one brand. However, Sasha has to make sure that the customers do not divert from the company once they have tried the clothes by Sasha. Customers will be segmented based on the usage of clothes (Hartley and Claycomb 2013). Thus, Sasha will target the women who are working and need to wear various types of clothes daily more. Once they are using clothes at a regular basis, they will buy the clothes on regular basis (McKenzie-Mohr 2013). In addition to this, if they get the products at a cheaper rate than other brands, they will be start preferring Sasha. The perception and the belief of the customers will also help in the segmentation the customers (Armstrong et al. 2014). Sasha will target the customers who are fashionable and have love for fashion and have an interest for buying fashionable clothes at a cheaper rate.

The lifestyle of the customers hugely affects the business of a company (Papadopoulos and Heslop 2014). Sasha will target the women who are working and have a considerable amount of income. The women who are working and living in the urban areas will have a good sense of fashion (Boone and Kurtz 2013). Hence, they will be the main target of Sasha. The people who are living in the urban areas will have an idea about the latest fashion and trends (Stelzner 2014). They will be able to understand the business of Sasha and eventually the sales will rise. In addition to this, women prefer to wear clothes that will reflect their personalities. This type of attitude is also found in the working women who are modern and independent (Pike 2015). Thus, the products will be designed so that they are able to attract the women who are modern and are ready to experiment with clothes and fashion. The modern women are always ready to take risk and they would not fear in trying a new company or any new fashion that will introduced by the new company (Baker 2014).

Sasha will manufacture the products as per the needs and the demands of the customers. If there is any need or changes in the market, the up gradation will be done by the company. The customers will get designed clothes at a reasonable rate (Kotler et al. 2015). Thus, if any new design is being launched in the market, Sasha will adopt the design and will launch their online of products. They will compare their products with the types of products that are prevalent in the market. If any of the products is not up to date, they will consider the changes and do the needful changes. The products will be changed based on the seasons and festivals, so that the customers get the clothes as per needs of the seasons and the festivals (Ryan 2016). Once a new company comes into the market, the customers start comparing the products. The existing companies are always compared with the new company (Christopher, Payne and Ballantyne 2013). Thus, it is necessary that Sasha should be able to surpass the exiting companies and promote the products. The customers should be able to understand the value of the products. The best way to make the customers understand the value of the products is by giving proper discount and offers (Scott 2015).

The price of the clothes will be comparatively lesser than the competitors who are doing business in the competitive market of the United Kingdom (Grönroos and Gummerus 2014). As Sasha will be into the fashion business, hence, the company will make sure that they have to pay only once for the products. The quality will be good and they would not have to pay for the products after it has been purchased (Kolodziej 2014). The online sites will come with easy payment options (Belch et al. 2014). The buyers either can pay with cash, cards, EMIs or can pay through net banking. It will help the buyers to purchase the clothes in bulk. The buyers will get designer clothes at an affordable price (Huang and Sarigöllü 2014). There will be clothes for the customers who are ready to pay good price for the products as well as for customers who want the goods at an affordable price (Smith 2015). For people who are coming to the stores to buy the clothes can also avail a number of payment options (Yadav and Pavlou 2014).

As a Sasha is opening it new business in the market of London, it is necessary that they promote their business well (Kiel 2014). There will be online promotions as well as offline promotions. Online promotions will be done based with eh help of personalized e-mail as well as social media (Achrol and Kotler 2014). Social media will help Sasha to reach wide range of people. The visitors will be directly link to the webpage of Sasha once they click the advertisements in the social media (Tuten and Solomon 2014). The discussion in the social media will also give Sasha the required promotions. Word of mouth is one of the best ways to promote the business and hence, the social media will be helpful in spreading the word of mouth (Kumar 2015). Once the customers will talk about their experience in the social media, other people will also come to know about the new company (Kozlenkova Samaha and Palmatier 2014). In this way, Sasha will be able to promote the products among the people. Personalized e-mail will be sent to the individual based on their purchase behavior. A thorough market research will help Sasha to understand the purchase behavior of the customers (Malhotra, Birks and Wills 2013). Based on their past purchases and preference for types of clothes, the mail will be set to them. There will be inaugural offers as well to promote the company (Lovelock and Patterson 2015). People can use discount codes to avail discounts. Other than the online media, Sasha will also do physical promotions (Piercy 2014). There will be hoardings that will bear the advertisements of Sasha as well as in the newspapers (Brennan 2014). People who might have missed out the mails or the social media sites will be able to see them physically and will come to know about the company. Even though promoting physically is a part of traditional promotions, it will be helpful in gaining the attentions of the customers (Risselada, Verhoef and Bijmolt 2014). To promote the company sash should be make itself visible in various event and exhibitions (Hollensen 2015). They might not gain good amount of promotions but it will give the desired promotions. The people who are coming to the events will come to no about the company and eventually it will help in spreading the word of mouth (Babin and Zikmund 2015). Seasonal offers and discounts will also help them to gain the desired customers. The customers will make good amount of purchases during the festivals and discounts will attract them towards Sasha (Sheth and Sisodia 2015).

Place will not be an issue as far as the online shopping is concerned (Strauss 2016). Sasha will start with the delivery in the local regions and then will promote their business through online sales in other regions as well (Lusch and Vargo 2014). Based on the popularity of the store, Sasha will have to spread the business accordingly. As far as the physical stores are concerned, Sasha will start with opening it first store on one of the commercial places in London where the footfall of the customers will be more (Czinkota and Ronkainen 2013). Once the footfall will be more, they will notice the stores in a better manner and eventually the people will be interested in the company (Hartley and Claycomb 2013). Sasha should also use the stores a way of promotions by displaying the clothes and the discounts of any. However, placing the store in a commercial region will also enhance the competition (McKenzie-Mohr 2013). On the other hand, ahs will be able to keep a close watch on the competitors and make the changes in their operations accordingly (Armstrong et al. 2014).

Based on the customer segmentation and the marketing mix, it is necessary to understand the positioning of the store (Papadopoulos and Heslop 2014).

Figure 2: Positioning map of Sasha

(Source: Created by author)

As per the positioning map, the products of Sasha will be low priced. However, they will  introduce high prices clothes once they will be able to gain good business from the market. Sasha will keep in mind both quality of the products as well as fashion. The customers will be satisfied with the quality as well as fashion. Sasha will keep in mind that the customer would not have to compromise on one thing to get the other.

Conclusion

After going through the conditions of the fashion industry of the united kingdom, it can be concluded that, it will be tough for Sasha to make its presence felt in the market. The conditions of the fashion market and especially women fashion industry are quite favorable to launch a business. There has been an increase in the amount of shopping the women are doing. With the advent of the technology, the rate of online shopping has also increase. Overall, the women customers have got more inclined to fashions. However, when a market is favorable it will give rise to competitions. The eternal market shows that the incorporation of various taxes will not only increase the price of the products but will limit the purchasing power of the customers. Brexit will not only affect the business of the fashion companies in London but will also affect the business of the country as a whole. Technology will help Sasha as people are well acquainted to the internet. The ageing populations of the United Kingdom might decrease the target market but home delivery service will be enhanced. The enhancement of the home delivery service will help in attracting the customers who are unable to go out of their house and the business will rise eventually. As the customers are aware of the environmental issues, Sasha will have to take help of sustainable business. The changing minimum wage regulations might create an issue. However, sash will have to keep a check on the change in the regulations. Porter’s five forces show that the buyer power will be high the customers will have a huge range of options to choose from.  A number of companies will increase the threat of rivalry for Sasha Threat of substitutions and the threat from the new entrants will be medium for Sasha. There will be no substitutions of any different products for clothes. On the other hand, the new companies will not have anything offer anything new to the customers in the fashion industry. A number of suppliers are presnt in the market and hence the power of the suppliers will relatively low.

Once Sasha has evaluated the external market, it will then segment the customers. The customers will be segmented based on socio-demographic, geographic, behavioral and psychographic factors. As it has been seen that there has been rise in shopping among the women between the age group of 16-24 year of age, they will target the women in that age range. In addition to this, parents of the teenagers will also be targeted. The women who are working and are living in the urban areas will be segmented for further promotions. As the people in the uebrn areas has better idea about fashion, sale will be more among these women. People will seek benefit from the products that they are purchasing and hence, proper pricing will be done for the clothes. Sasha will segment the women who have changed their brands often. The women who have changed their brands often, they will try the new company. On the contrary, women who have stuck to one company will be difficult for Sasha to convince them in the first go. The modern women will be targeted. Nowadays, women tend to wear their personalities in their clothes. Hence, the clothes will be designed in such a manner do that it show case the modern and independent women.

After in the segmentation, the marketing mix of the products has been measured. The products should give good value tkiebh csustoemta cutely, that ius the only boptuon that will help in attracting customers. In addition to this, the products should be good in quality so tjhat onetime payment will help the customers get good value of the products. The price will comparatively lower than the competitors in the market do. Promotions will be done both online as well as offline. Online promotions will be done through social media and with the help of the personalized e-mail. Offline promotions will be one with the help of hoardings and newspapers. Promotions will be done in the stores as well where the clothes and the discounts will be made visible. The place of the store will be one of the commercial areas where the footfall of the visitors will be more. They will come to know about the store if the new store is places in a location where there are other stores.

Sasha has taken necessary steps to prom tie the business in the United Kingdom. However, certain recommendations could be made to enhance the business further for Sasha. To attract more customers, introduction of a virtual store is also necessary. The customers will go to the website of Sasha and they can take virtual tour to the stores. They can select the sections from they want to buy the products. In this way, they will feel that they are shopping in the store but can do that by sitting at home. It might happen that the clothes that are available online will be available in the virtual store as well. However, the virtual stores will help on attracting the customers from the international countries. The local customers can go to the store anytime, but the international customers will get the feel of the store if they enter the website of the company. They will automatically connect to the company by looking into the interior of the store. They will feel that they are visiting the interior of a store in the United Kingdom just by sitting in their country.

It can also be recommended that while they are promoting the clothes in an event or an exhibition, they should also give discounts and offers. People who have either come to the stalls will get extra discounts when they will go the store or purchase the clothes online. On the other hand, people who have made purchase from the stalls will get better discounts when they will go to the store or shop online. It will be helpful for Sasha in the initial stage. They will be able to attract the customer who might get converted into long term customer.

The website of Sasha should have multiple languages so that the customers from various countries can connect with Sasha. Many nations are not well acquainted the English language. It will be easier for them to check through the website of Sasha. Sasha should start with few numbers of languages and them they can move on with other languages. Operations in multiple languages will help them in promotions as well as gain business from international countries. Suggestions will also be accepted from the visitors of the site. If they want the website in their language, they can leave their comments and the changes could be made accordingly. Sasha shpuld respond to the suggestions of the visitors and keep them updated with the changes.

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